Iraq, Iran agree to Resolve Dispute on Joint Oil Fields

Kurdish members of parliament have another opinion in the issue of building a pipeline through Iran. Tareq Sadiq, a member of parliament with the Kurdistan Alliance, told Al-Monitor, “Extending a pipeline from Kirkuk to Iran is impossible. The project will not go through due to its high cost, political situation and partisan disputes that would impede it. Sulaimaniyah will not allow it.”

According to Zanganeh, Iran wants to implement several strategic projects to enhance its cooperation opportunities with Iraq. He seemed reassured about the improvement of global oil prices, following OPEC’s decision to reduce production in December.

Strategic expert Abdul Rida al-Hamid, an academic at the Faculty of Management and Economics at the University of Baghdad, said that the agreement was signed with Iran because successive Iraqi governments have not adopted clear economic policies, in general, and oil policies, in particular. The state lacked a specific identity. He told Al-Monitor, “The Iraqi government’s oil policy faces many challenges, including international willpower, the domestic political situation and the connection between the state’s existence and the oil pipelines.”

He added, “The government will not resort to exporting oil through a long and costly pipeline. It can make up for this by establishing a pipeline from Kirkuk to Basra, which is more efficient economically and less costly. It would also shield the Iraqi economy from political fluctuations and would open thousands of job opportunities for the unemployed.”

Hasty governmental solutions that the Iraqi government has been adopting to rescue itself from the various crises will only multiply its woes and will not stabilize the Iraqi economy.

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